| The anti-dumping duty is determined by the dumping margin in some WTO members. In these members, the determination of injury, which is a requisite part in the anti-dumping investigation, is a qualitative decision concerned with whether dumped imports caused injury to a domestic industry. However, in some WTO members of which the EU is the representative, investigating authorities not only make a qualitative analysis on whether dumped imports caused injury to a domestic industry, but also make a quantitative analysis on the extent to which dumped imports caused. If the injury margin calculated as the result of the quantitative analysis is lower than the dumping margin, the anti-dumping duty is determined by the injury margin instead of the dumping margin. Such a practice is called “lesser duty rule” in anti-dumping law.The lesser duty rule is justifiable both in law and economics, and is widely applied by WTO members and supported by the overwhelming majority in the WTO Doha Round Negotiation. The crux of it is the calculation of the injury margin. The WTO Anti-dumping Agreement does not give any guidance on its calculation. In EU, who has the richest practices in its calculation, the price undercutting method and the price underselling method are widely used, which are widely accepted by other WTO members.The lesser duty rule is not applied by China and the anti-dumping duty is determined by the dumping margin. As this rule is justifiable and beneficial to China, China should amend its Anti-dumping Regulation and incorporate the lesser duty rule in it, so as to apply this rule in anti-dumping investigations. As for the methods of the calculation of the injury margin, the price undercutting method and the price underselling method should be used. |
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